Farmer Brothers (NASDAQ:FARM) Releases Earnings Results, Misses Expectations By $0.08 EPS

Farmer Brothers (NASDAQ:FARM) posted its earnings results on Friday. The company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.14) by ($0.08), Zacks reports. The business had revenue of $88.92 million for the quarter, compared to analyst estimates of $90.47 million. Farmer Brothers had a negative return on equity of 13.80% and a negative net margin of 4.00%.

Here are the key takeaways from Farmer Brothers’ conference call:

• We expect improving gross margins beginning in Q4 FY2026 and further benefits in FY2027 due to recent declines in Arabica/Robusta prices and tariff reductions, with gross margin this quarter at 36.3% and remaining above 35%.
• Adjusted EBITDA was only $484,000 for the quarter while the company recorded a $4.9 million net loss versus prior-year net income, reflecting margin and cost pressures.
• Top-line demand softened with net sales down 1% to $88.9 million and total coffee pounds declining just under 3%, amid weak consumer confidence.
• Management reduced operating costs by $1.4 million (including about $700,000 lower G&A and reduced personnel costs), demonstrating continued cost discipline.
• Liquidity included $4.2 million of unrestricted cash and $24.6 million available under the revolver, and a strategic committee remains actively evaluating options to maximize shareholder value.

Farmer Brothers Stock Performance

Shares of FARM stock opened at $1.54 on Friday. The stock has a market capitalization of $33.27 million, a price-to-earnings ratio of -2.44 and a beta of 1.27. Farmer Brothers has a one year low of $1.34 and a one year high of $3.29. The company’s 50-day simple moving average is $1.56 and its 200-day simple moving average is $1.68. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.46 and a current ratio of 1.24.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on FARM. Zacks Research raised shares of Farmer Brothers from a “strong sell” rating to a “hold” rating in a research note on Friday, January 30th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Farmer Brothers in a report on Monday, December 29th. Finally, Roth Mkm lowered their price objective on shares of Farmer Brothers from $3.50 to $3.00 and set a “buy” rating for the company in a research report on Wednesday, November 26th. One analyst has rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $2.75.

Farmer Brothers News Summary

Here are the key news stories impacting Farmer Brothers this week:

• Positive Sentiment: Some sell-side support and price-target cushion remain: at least one firm (Roth Capital) still has a Buy rating and recent median price targets (~$2.75) are well above the stock’s current level, providing upside if execution recovers. Farmer Brothers Company (FARM) Stock Falls on Q2 2026 Earnings
• Neutral Sentiment: Company released formal results, filed its 10‑Q and hosted an earnings call (prepared remarks/transcript available) — useful for deeper detail on drivers and any guidance changes but not an immediate catalyst by itself. Farmer Bros. Co. (FARM) Q2 2026 Earnings Call Prepared Remarks Transcript
• Neutral Sentiment: Short-interest reporting in syndicated feeds appears to show anomalies (zeros/NaN) for mid‑February; the published short-interest data is unreliable and should not be relied on until exchanges provide corrected reporting. (Data noted in multiple summaries.)
• Negative Sentiment: Q2 EPS missed expectations: reported a loss of $0.22/sh vs. consensus around a smaller loss, widening the company’s negative EPS trend and increasing near-term earnings uncertainty. Farmer Brothers (FARM) Reports Q2 Loss, Beats Revenue Estimates
• Negative Sentiment: Revenue and margins under pressure: revenue (~$88.9M) was roughly in-line to below some estimates and gross profit and margins declined (costs of sales rose materially), producing an operating loss and weaker cash flow — factors that triggered the steep negative price reaction after the print. Farmer Brothers Company (FARM) Stock Falls on Q2 2026 Earnings
• Negative Sentiment: Balance sheet / cash metrics weakened: cash and equivalents declined year-over-year and operating cash used increased, while institutional holdings data show net reductions from several funds in recent quarters — heightening liquidity and sentiment risk until margins and cash generation improve. Farmer Brothers Coffee Reports Second Quarter Fiscal 2026 Financial Results

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. XTX Topco Ltd raised its position in shares of Farmer Brothers by 210.2% during the 2nd quarter. XTX Topco Ltd now owns 42,297 shares of the company’s stock valued at $58,000 after acquiring an additional 28,661 shares in the last quarter. Jane Street Group LLC increased its stake in Farmer Brothers by 152.2% during the first quarter. Jane Street Group LLC now owns 41,129 shares of the company’s stock valued at $91,000 after purchasing an additional 24,820 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of Farmer Brothers by 253.7% during the first quarter. Goldman Sachs Group Inc. now owns 68,833 shares of the company’s stock worth $153,000 after purchasing an additional 49,374 shares during the period. Finally, Gabelli Funds LLC raised its holdings in shares of Farmer Brothers by 2.3% during the second quarter. Gabelli Funds LLC now owns 272,500 shares of the company’s stock worth $373,000 after purchasing an additional 6,000 shares during the period. Institutional investors and hedge funds own 64.48% of the company’s stock.

About Farmer Brothers

Farmer Brothers Company (NASDAQ: FARM) is a specialty coffee roaster and distributor that serves the foodservice, hospitality and office coffee markets across the United States. The company produces and delivers coffee, tea, single-serve products and beverage equipment, supporting its customers with supply chain solutions, equipment maintenance and barista training services. Its operations are organized to serve commercial accounts ranging from national restaurant chains and convenience stores to independent coffee shops and corporate offices.

Founded in 1912 in Texas, Farmer Brothers has grown from a regional roaster into a national supplier with a network of manufacturing and distribution facilities.